Beyond Smart Beta: Index Investment Strategies for Active Portfolio Management

Discover Higher Returns by Indexing with Exchange–Traded Products

Beyond Smart Beta is the definitive guide to using index investing to enhance your active portfolio management. An author team recognized as thought–leaders and accomplished practitioners in the industry explores the full selection of exchange–traded products (ETPs). They discuss the risks and paybacks related to a variety of indexing approaches and share insightful views on next–generation methods evolving in the marketplace. Dozens of charts and tables offer visual examples of the concepts covered throughout, all of which aim to give you a firmer grasp on the mechanics and practices behind ETP. Numerous practical examples give special attention to some critical facts about indexes that even seasoned traders and investors overlook. Balance your portfolios for future gains by:

Acquiring expert–level knowledge of ETP handling, costs, trading and investment Skilfully assessing today′s ETP landscape and avoiding costly pitfalls while mitigating risk Immediately boosting your investment strategy and weatherproofing your portfolios

Beyond Smart Beta shows active investors how to maximize returns with passive products.

"A very timely book that will help demystify the often misunderstood world of smart beta."
Michael John Lytle, original co–founder of Source ETF; currently an independent business strategist in London, UK

Preface

Acknowledgments

About the Authors

Chapter 1: The Beauty of Simplicity The Rise of Passive Investments

Outperformance A Tough Challenge

Institutional Investors: A Small Change in Allocations, A Big Step for Passive Investments

Not All Big Guys Love ETFs

Chapter 2: The History of Indexing and Exchange Traded Products

Frequent Pricing Thanks to Copper and Feather

Journalist Trio Pictures the Market

Indexation Across the Globe

Customized Indexing aka Smart Beta

Exchange–Traded Funds A unique all–rounder

Exchange–Traded Commodities Heavy metal even for lightweight investors

Exchange–Traded Notes The Underdog

Chapter 3: Index Evolution

Benchmark Indices

Smart Beta Indices (Second Generation of Indexing)

Next Generation Indices (Third Generation of Indexing)

Chapter 4: The Good, Bad and Ugly A Critical Review of Today s Indexing Approaches

Synthetic vs. Physical Replication

Second Generation Indexing Critique – The Bad Ones

Commodity / Energy / Oil ETP Products

Volatility ETPs

Chapter 5: Advantages Unlimited Portfolio Application Strategies for Superior Index Investing

Never Underestimate the Importance of Investment Costs

Smart Beta Deconstruction

Mind the Behavioral Gap Earning More by Avoiding Investing Errors

Next Generation of Asset Allocation Risk Factor Allocation Approach in Portfolio Construction

The Ultimate Question: Passive or Active?

Chapter 6: Unchaining Innovation The Future of Active Investing in Passive Products

Alternative Investing

Environmental, Social and Governance (ESG) Based Investments

Customized Indexing

References

Glossary

Index

GÖKHAN KULA is managing partner and CIO of MYRA Capital. Formerly he was managing director and Head of Asset Management of the Walser Privatbank Invest S.A., and a board member of several Luxembourg–based investment companies. He is a CFA and FRM Charterholder and a consistent voice in the financial media published in Germany, Austria and Switzerland.

MARTIN RAAB is executive director of Derivative Partners, Registered Investment Advisor, and a senior adviser to the board of MYRA Capital. He is the publisher and editor of several investment publications, a public speaker on financial products, and is regularly quoted by POLITICO, Bloomberg Brief and various other media.

SEBASTIAN STAHN is Treasury and Investment Manager at Wüstenrot Group. Formerly he worked as senior portfolio manager, fund manager and advisor to institutional clients at MYRA Capital and Walser Privatbank. He is a CFA charterholder and a renowned expert in efficient and rules–based investment strategies.